A new approach is needed for derivatives

Warren Buffet has stimulated debate on macro effects of the industry

By

Stephen Ashworth

March 17, 2003 5:00 p.m. GMT

Experts in their field and those with great experience rarely fail to stimulate debate when they pass comments that are either topical or controversial. This is particularly true of Warren Buffett. The sage of Omaha's comments, shared with the world through his annual letters to shareholders of Berkshire Hathaway, are eagerly awaited by the press and industry professionals.

This year he has opened up a fierce debate within the derivatives industry following frank comments outlining his concerns. Specifically he cites the systemic...